The Bull Bear Trader discusses market events and news with an interest in understanding risk and return in both bull and bear markets. Discussion topics include trading and hedging strategies, derivatives, risk management, hedge funds, quantitative finance, the energy and commodity markets, and private equity, as well as an occasional investment opinion.

Wikinvest Wire

Global X Funds has filed a prospectus with the SEC to offer six new ETFs that will be designed to follow six different sectors within the Chinese economy (IndexUniverse). The six sectors/categories include consumer, energy, financial, industrial, material, and technology. The plan is for the funds to be 80% invested in ADRs and Global Depository Receipts, with the remaining 20% invested in swaps and various options contracts. The fund hopes to replicate the underlying FTSE sector-specific indexes with a 95% accuracy after fees and expenses. While there are many funds that follow the broader Chinese economy, the new ETFs will be some of the first to allow investors to focus on a specific sector within this region. The fact that such sector-specific ETFs are being offered for the Chinese economy also tells you something about demand and interest for investing more directly within this growing and increasing influential market.